How to prevent inheriting packages from parent node_modules

First I will give some context to the problem.

I am developing an npm library. Inside the project folder, I have another folder called "example", for testing the library. The structure looks like below.

|- node_modules/
|- src/ 
|- example/
|   |- node_modules/
|   |- src/
|   |- package.json
|- package.json 

The root package.json has the dependency babel-jest. The example/package.json has the dependency react-scripts. When running react-scripts start inside example directory, it gives the following error,

---

As far as I can understand, this is because, the package.json inside the example/ directory inherits (not sure if this is the right term) the dependencies of the root package.json.

That is, I can use a dependency installed in the root package.json, inside the src/ of the example/ This is convenient in some cases. But this is a blocker for my use case.

How can I prevent this behaviour? (without changing the directory structure)

Thank you.

From what I understand, Dan Abramov suggests to use SKIP_PREFLIGHT_CHECK=true to work around this problem as there is no real fix.